Evaluating AEO in facilitating trade and improving compliance

Abstract

This study’s objectives were to assess the extent the AEO programme contributed to improved customs tax compliance among participating businesses and how the AEO programme has affected trade facilitation in South Africa. A mixed-method research approach was used, combining qualitative and quantitative data from a survey. The sample size was 22, selected through purposive stratified sampling, including 1 tax lecturer from the University of KwaZulu-Natal and 21 middle management employees from the South African tax administrator’s AEO department. Key informants reported that the AEO programme has enhanced compliance rates through the implementation of improvement initiatives, the establishment of partnerships, and support for non-compliant applicants. The AEO programme is a voluntary initiative created by the World Customs Organisation in order to ensure compliance and facilitate trade. The programme enhances trade by offering dedicated support through CRM teams, streamlining business operations, and ensuring the swift release of goods.

Keywords: {'name': 'AEO, South African tax administrator, trade facilitation, customs tax compliance, World Customs Organisation, SARS AEO'}

Authors & affiliations

Olebogeng Nkhahle
University of KwaZulu-Natal

Kiran Baldavoo
University of KwaZulu-Natal

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